Ex-ante margin squeeze tests in the telecommunications industry: What is a reasonable efficient operator? (Revised: December 20, 2012)

Germain Gaudiny and Claudia Saavedra Valenzuela

23rd European Regional ITS Conference, Vienna 2012 from International Telecommunications Society (ITS)

Abstract: We study the implementation of reasonably efficient operator margin squeeze tests by National Regulatory Authorities in European telecommunications markets. We provide a theoretical framework in which we show how regulatory authorities deal with the asymmetries between the entrants and the incumbent by adjusting the equally efficient operator margin squeeze test used in competition policy. Using this framework, we build a benchmark of implementation choices by inspecting authorities' guidelines, market analyses and decisions. We find that some implementation choices are very similar across the authorities' decisions, whereas some others are dealt with quite heterogeneously.

Keywords: Margin squeeze; Imputation test; Regulation; Telecommunications (search for similar items in EconPapers)
JEL-codes: L51 L96 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-com and nep-reg
Note: Revised Version: December 20, 2012
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:itse12:67955

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